MONEY MARKET AND CAPITAL MARKET

Prelims 2023 Prelims 2020

Consider the following markets: With reference to the Indian economy, consider the following
1. Government Bond Market statements:
2. Call Money Market 1. 'Commercial Paper' is a short-term unsecured promissory note.
3. Treasury Bill Markets 2. 'Certificate of Deposit' is a long-term instrument issued by the
4. Stock Market Reserve Bank of India to a corporation.
How many of the above are included in capital markets? 3. 'Call Money’ is a short-term finance used for interbank
(a) Only one (b) Only two transactions.
(c) Only three (d) All four 4. Zero-Coupon Bonds are the interest-bearing short-term bonds
issued by the Scheduled Commercial Banks to corporations.
Prelims 2023
In the context of finance, the term 'beta' refers to Which of the statements given above is/are correct?
a) the process of simultaneous buying and selling of an asset from (a) 1 and 2 only (b) 4 only (c) 1 and 3 only (d) 2, 3 and 4 only
different platforms
b) an investment strategy of a portfolio manager to balance risk Prelims 2022
versus reward With reference to Convertible Bonds, consider the following statements:
c) type of systemic risk that arises where perfect hedging is not 1. As there is an option to exchange the bond for equity, Convertible
possible Bonds pay a lower rate of interest.
d) a numeric value that measures the fluctuations of a stock to 2. The option to convert to equity affords the bondholder a degree of
changes in the overall stock market indexation to rising consumer prices.
Which of the statements given above is/are correct?
(a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2
 MONEY MARKET AND CAPITAL MARKET
Prelims 2016 Prelims 2014
With reference to 'IFC Masala Bonds', sometimes seen in the news,
What does venture capital mean?
which of the statements given below is/are correct?
(1) The International Finance Corporation, which offers these (a) A short-term capital provided to industries
bonds, is an arm of the World Bank. (b) A long-term start-up capital provided to new entrepreneur
(2) They are the rupee-denominated bonds and are a source of
(c) Funds provided to industries at times of incurring losses
debt financing for the public and private sector.
Select the correct answer using the code given below. (d) Funds provided for replacement renovation of industries
(a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

Prelims 2011
Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs) ?
1. The Government intends to use the revenue earned from the disinvestment mainly to pay back the
external debt.
2. The Government no longer intends to retain the management control of the CPSEs.
Which of the statements given above is/ are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
 Components of Financial Market

Capital Market Money Market

Duration Medium- and long-term Capital Short term Capital (Ranging from 1 day to Less than 1
( > 1 year) year)
Participants Companies, Financial Institutions, Banks, Companies, Financial Institutions, Banks, Foreign
Foreign Investors, Government, Retail Investors, SBI Discount and Finance House of India (DFHI)
Investors Participation of Retail Investors is quite limited as the
minimum investment in Money Market Instruments is
higher.
Instruments Shares, Bonds, Debentures, Exchange Commercial Paper, Certificate of Deposit,
Traded Funds, REITs, InVITs etc. Call/Notice/Term Money, T-Bills, Cash Management Bills,
Market Repos, LAF Repos, Money Market Mutual Funds
etc.
Risk Higher Lower
Liquidity Lower Higher. Necessary liquidity to the Money market
instruments provided by SBI DFHI
Regulator SEBI RBI.
However, certain aspects of Money Market such as
Money Market Mutual Funds is regulated by SEBI
 Prelims 2020 Practice MCQ No. 211
Consider the following statements: Consider the following statements:
1. 'Commercial Paper' is a short-term unsecured promissory 1. The Money Market instruments are considered to be less risky and more
note. liquid as compared to Capital Market Instruments.
2. 'Certificate of Deposit' is a long-term instrument issued by the 2. The participation of Retail Investors in Money Market is higher as
Reserve Bank of India to a corporation. compared to Money Market.
3. 'Call Money’ is a short-term finance used for interbank 3. There are Electronic Trading Platforms for Trading of Money Market
transactions. Instruments
4. Zero-Coupon Bonds are the interest-bearing short-term bonds How many statements given above is/are correct?
issued by the Scheduled Commercial Banks to corporations. (a) Only One (b) Only Two (c) All Three (d) None
Which of the statements given above is/are correct?
(a) 1 and 2 only (b) 4 only (c) 1 and 3 only (d) 2, 3 and 4 only Practice MCQ No. 212
Consider the following statements:
Prelims 2023 1. The Commercial Paper is a short-term instrument which is issued at
Consider the following markets: discount and redeemed at face value.
1. Government Bond Market 2. Call Money Market 2. The Certificate of Deposit is a short-term tradeable instrument issued by
3. Treasury Bill Markets 4. Stock Market banks and Financial Institutions.
How many of the above are included in capital markets? 3. Call/Notice Money is a form of Non-Collateralised Inter-Bank Borrowing
(a) Only one (b) Only two and Lending.
(c) Only three (d) All four How many statements given above is/are correct?
(a) Only One (b) Only Two (c) All Three (d) None
Practice MCQ No. 210
With respect to Money Market, consider the following statements: Practice MCQ No. 213
1. The Money Market is used for raising short term capital for a Consider the following statements with respect to Tri-Party Repos:
period of less than 1 year. 1. It is a form of Repo wherein RBI acts as Intermediary between two Banks
2. The Money Market is regulated by the RBI. 2. Apart from G-Secs, Corporate Bonds can also be used as collateral in Tri-
3. The Interest rate in the Money Market is market determined Party Repos.
How many statements given above is/are correct? Which among the statements given above is/are correct?
(a) Only One (b) Only Two (c) All Three (d) None (a) 1 only (b) 2 Only (c) Both 1 and 2 (d) Neither 1 nor 2
 Structure of Capital Market

Market Infrastructure Institutions under SEBI

Stock Exchanges in India Depositories Clearing Corporations

1. BSE: Oldest Stock Exchange in Asia. BSE Sensex: Tracks Organization which holds securities (like Guarantee that every buyer will get the
performance of Top 30 Companies. shares, debentures, bonds, government securities which are bought by him and
2. NSE: NIFTY- Tracks performance of Top 50 Companies securities, mutual fund units etc.) of every seller of securities will get money for
3. Calcutta Stock Exchange investors in electronic form. the securities sold by him.
4. Metropolitan Stock Exchange of India Limited
5. Multi commodity Exchange of India Example: National Securities Depository Example: Indian Clearing Corporation, NSE
6. National Commodity and Derivative Exchange of India Limited (NSDL) and Central Depository Clearing Ltd.
7. Indian Commodity Exchange Limited Services (India) Limited (CDSL)

Brokers Depository Participant

• Bring together Buyers and Sellers to aggregate the Agent of the depository through which it
demand and supply and hence help in efficient price provides Depository Services to Investors.
discovery Includes Banks, NBFCs, Brokers etc.
• All the Brokers are registered with the SEBI.
• Examples include Groww, Zerodha, Angel One, Upstox
etc.
Primary Market
 Bond Market

Important Developments
1 SEBI Regulatory Framework for Online Bond Platforms
2. Corporate Debt Market Development Fund (CDMDF)
3. Inclusion of G-Secs in Bond Market Index
7. New Type of Bonds in News: Masala Bonds, Surety Bonds, Blue Bonds, Yellow Bonds, ESG Bonds,
Social Impact Bonds, Skill Impact Bonds, Catastrophe Bonds
 Online Bond Platforms
Issue of Bonds
Public Issue Private Placement

Stock Exchanges Online Bond Platforms (OBPs)

1. Most of the Bonds are issued through Private Placement
2. Most of the Investors are Non-Institutional Buyer
3. Volume of Trade executed through OBPs has increased

Reasons for Growth of OBP Concerns SEBI’s Regulatory Framework for OBP
1. Offer Higher Yield rates on Bonds 1. Lack of Regulatory Oversight Definition of OBP: Electronic system on which the debt
2. Low Interest rates in Fixed 2. Non-Adherence of KYC securities which are listed or proposed to be listed, are
Deposits Norms offered and transacted.
3. Increase in Number of Demat 3. Potential Conflict of Interest
Accounts. Bonds which can be offered: Only listed or to be listed Bonds
4. Rise of Fintech Companies (including Municipal Bonds and G-Secs)

Execution of Trades through Stock Exchanges

Disclosure of conflict of Interest on the platform.

 Corporate Debt Market Development Fund (CDMDF)

Background (2019)

Franklin Templeton Invested in Bonds and Default on Panic among Investors

Investors Mutual Fund Commercial Papers which Commercial Paper leading to
Company are rated AA and below by IL&FS Company Redemption Pressures

Main Crux of the Problem: Inability of Franklin

Closure of 6 Mutual Funds
Banks have lender of Last resort in form of RBI. Templeton to honor its
Loss of Confidence among
However, there is no “Buyer of Last resort” for the commitment towards
Investors
Debt Mutual Fund Companies Investors
 Corporate Debt Market Development Fund (CDMDF): Structure and Functioning

Investors:
• Debt Oriented Mutual Fund Companies
• Mandatorily Invest in CDMDF
• Total Corpus: Rs 3000 Crores

2
1
• CDMDF has been set up as AIF.
Alternate
• Registered as Trust with SEBI and managed by
Investment SBI Funds Management Limited.
Fund • Closed Ended Scheme with Tenure of 15 years

3 4
Normal Time Market Dislocation (Liquidity Stress)
• Invest in low-risk Debt Instruments such as G- • CDMDF would act as Buyer of Last resort and buy Debt
Secs, T-Bills, AAA Debt Securities. Securities from Investors and provide Liquidity Support.
• Profits earned on such Instruments shall be • Cannot buy unlisted or below Investment Grade Securities
maintained with the CDMDF only. • CDMDF can borrow up to Rs 30,000 crores from Banks to
• Profits shall be provided to investors only after fulfil its role as “Buyer of Last resort”.
the tenure of 15 years. • National Credit Guarantee Trust Company (NCGTC)
guarantees repayment of loans by CDMDF.
 Practice MCQ No. 214
With reference to Corporate Debt Market Development Fund (CDMDF), consider the following statements:
1. The CDMDF has been set up as Alternate Investment Fund (AIF) to provide liquidity support to the Debt
Mutual Fund companies.
2. Contribution to the CDMDF is mandatory for the Debt Mutual Fund Companies.
3. The Government provides Guarantee on loans taken by CDMDF from Banks through National Credit Guarantee
Trust Company (NCGTC)

How many statements given above is/are correct?

(a) Only One (b) Only Two (c) All Three (d) None
World Bank’s Catastrophe Bonds
 World Bank’s Catastrophe Bonds

Practice MCQ No. 215

With respect to World Bank’s Catastrophe Bonds, consider the following statements:
1. These Bonds offer guaranteed returns to the investors regardless of the
occurrence of disasters.
2. These Bonds offer higher returns to the investors as compared to normal bonds.
3. These Bonds provide financial resilience to the countries to withstand the impact
of Disasters.

How many statements given above is/are correct?

(a) Only One (b) Only Two (c) All Three (d) None
Inclusion of G-Secs in J P Morgan Emerging Market Bond Market Index
 Inclusion of G-Secs in J P Morgan Emerging Market Bond Market Index

Practice MCQ No. 216

How many among the following is/are the likely benefits of Inclusion of Indian G-Secs in Global Bond Indices?
1. Decrease in Sovereign External Debt
2. Decrease in Exchange Rate Volatility
3. Decrease in Bond Yields

Select the correct answer using the code given below:

(a) Only One (b) Only Two (c) All Three (d) None
 Inclusion of G-Secs in J P Morgan Emerging Market Bond Market Index

Benefits Challenges
1. More Dollar Inflows: $ 20-30 bn 1. Large Scale Rupee Appreciation
2. Increase in Demand for G-Secsà Higher Bond 2. Higher Exchange rate Volatility
Pricesà Reduced Bond Yields.
3. Enable Government to borrow more money at
lower rate of Interest.
4. Decrease in Rate of Interest on Loans as Yields on
G-Secs act as Benchmark for Floating rate loans in
certain cases.
5. Increase in Forex reserves
6. Help in Internationalization of Rupee
7. Reduce the Dependence on the Banks and improve
Credit-GDP Ratio
 Criteria Foreign Currency Bond Masala Bonds
Face Value: $ 1 Face Value: Rs 30
Example
Coupon Rate: 5% Coupon Rate: 7%
Maturity Period: 5 Years Maturity Period: 5 Years

Denomination Denominated in Foreign Currency Denominated in Rupees

Issued in 2020
Indian Company Borrows $ 1 and converts into Rs 30. Indian Company Borrows Rs 30.
Exchange rate: $ 1 = Rs 30

Scenario 1: Rupee Indian Company needs to repay $ 1 to the foreign Investor. Indian Company needs to repay Rs 30 to the foreign Investor.
Depreciation To get $1, Indian Company must pay Rs 60. Upon converting Rs 30 into dollars, Foreign Investor gets only $0.5

Redeemed in 2025 Hence, higher Risk on Indian Company due to Rupee

Exchange rate: $ 1 = Rs 60 Depreciation. Hence, higher Risk on Foreign Investor due to Rupee Depreciation.

Scenario 2: Rupee Indian Company needs to repay $ 1 to the foreign Investor. Indian Company needs to repay Rs 30 to the foreign Investor.
To get $1, Indian Company must pay Rs 15. Upon converting Rs 30 into dollars, Foreign Investor gets only $2.
Appreciation

Redeemed in 2025 Hence, Indian Company gets benefitted due to Rupee

Appreciation. Hence, Foreign Investor gets Benefitted due to Rupee
Exchange rate: $ 1 = Rs 15
Apppreciation.
 RBI’s Guidelines on Masala Bonds- External Commercial Borrowings (ECBs)
Eligible borrowers Banks, Corporates, REITs, InVITs
Recognized Investors Resident of a country which is
(a) Member of Financial Action Task Force
(b) whose securities market regulator is a signatory to the International Organization of Securities
Commission's (IOSCO’s) Multilateral Memorandum of Understanding
Minimum Maturity Period 3 years
End Use Restrictions Cannot be used for following purposes
• Real estate activities other than development of integrated township / affordable housing projects;
• Investing in capital market and using the proceeds for equity investment domestically;
• Activities prohibited as per the foreign direct investment guidelines;
• On-lending to other entities for any of the above purposes; and
• Purchase of Land
 Capital Market

Practice MCQ No. 217 Practice MCQ No. 218

With respect to Masala Bonds, consider the following Which among the following is/are the likely benefits of
statements: issuing Masala Bonds?
1. The Masala Bonds can be issued only by the 1. Check Rupee Depreciation
Government owned agencies. 2. Help in Internationalisation of Rupee
2. If the Rupee depreciates at the time of maturity of 3. If the Rupee appreciates at the time of maturity, it
Masala Bonds, the investor gets benefitted. benefits the Indian Company more than the
3. The money raised through Masala Bonds is investor.
considered to be part of External Commercial
Borrowings (ECBs) Select the correct answer using the code given below:
(a) 1 only
Which among the statements given above is/are (b) 1 and 2 only
incorrect? (c) 1 and 3 only
(a) 1 only (b) 1 and 2 only 9c) 3 only (d) 2 and 3 only (d) 2 and 3 only
 Additional Tier-1 Bonds

Current Context:
Credit Suisse Bank which was under crisis
in 2023 decided to write down AT-1 Bonds
i.e., Bond holders would not get back
their money. Bond holders lost around $
17.5 bn.

In 2020, Yes Bank decided to write down

AT-1 Bonds worth Rs 8000 crores.
 Criteria Normal Bonds AT-1 Bonds
Face Value: Rs 100 Face Value: Rs 100; Coupon Rate: 7%; No Maturity Period.
Characteristics
Coupon Rate: 5% They are called as Perpetual Bonds.
Maturity Period: 5 Years Hybrid Instruments- Features of Bond ( Interest) and Shares (Perpetual)

Purpose Borrow money to meet Investment Requirements Borrow money to meet capital requirements under BASEL III

Secured Yes No.

Risk Lower Higher

Can Skip Interest No Yes., under certain exceptional circumstances

Payments?

Redemption Upon Maturity. No “Put Option” i.e. Investors cannot demand for their amount.
However, Banks can exercise “Call Option” i.e., Banks can decide to repay the
money after certain duration at their own discretion.

Generally, Bank exercise this option after 7-8 years at their own discretion.

Can Bond Payments be No Yes, if the Banks reach the “Point of Non-Viability” as defined by the RBI.
cancelled/?

Note:
• These Bonds can be convertible into shares in certain conditions and hence are called as “Contingent Convertible Bonds” (CoCo Bonds).
• Though the AT1 Bonds are regulated by RBI guidelines issued in consonance with Basel III norms, however public issues and listing of these bonds
are regulated by SEBI.
• Only the Qualified Institutional buyers are eligible to buy AT-1 Bonds in the Primary Issuance of AT-1 Bonds. Retail investors are not allowed to
invest in the AT-1 Bonds through the Primary Market. However, Retail Investors can purchase AT-1 Bonds in the open market/Secondary Market.
 Practice MCQ No. 219
Which among the following statements is incorrect with respect to Additional Tier-1
Bonds under BASEL 3 guidelines?
A. These Bonds carry higher risk and hence offer higher coupon rates.
B. These Bonds do not have maturity period and hence called as Perpetual Bonds.
C. These Bonds can be converted into shares in certain contingencies.
D. These Bonds cannot be written off by the Banks.
 Example of Impact Bonds
Educate Girls’ Development Impact Bond : Funded by Children’s Investment
Fund Foundation (CIFF) and implemented by NGO “Educate Girls”.
Skill Impact Bonds launched by National Skill Development Corporation.
Utkrisht Bond launched by United States Agency for International
Development (USAID) to improve health outcomes of women in Rajasthan.

1
Provides funds to
Implementation Agency in • Expenditure on Social
form of Contractual Sector such as Education,
Agreement 2
Implementation Health, Sanitation etc.
Private Sector Agency • Required to meet the
Contractual Agreement targets set under
stipulates the targets to be
Contractual Agreement
met such as Increase in
learning outcomes, decrease
in IMR, MMR etc.
3

If Targets are
met
OUTCOME FUNDER
Provides funds to the Private Sector along with additional
returns.
Social Impact Bonds: Government (Outcome Funder)
Development Impact Bonds: Donor NGO or Foundation
 SURETY BONDS

Practice MCQ No. 220

The IRDAI has issued the guidelines for Surety Bonds. In this regard, consider the following statements:
1. The Surety Bonds can be issued by any entity incorporated in India under the companies Act.
2. The Surety Bonds act as a form of guarantee on the completion of infrastructure projects as per the
specifications.
3. The Surety Bonds can substitute Bank Guarantees in the Government procurement mechanism.

How many statements given above is/are correct?

(a) Only One (b) Only Two (c) All Three (d) None
Name of the Purpose Details
Bond
Blue Bonds Blue Economy: Deep Sea Mining, Promote Sustainable SEBI has proposed to issue guidelines for
Fishing, Coral Conservation etc. Blue Bonds
Yellow Bonds Raise money for Solar Energy and associated Industries SEBI has proposed to issue guidelines for
Yellow Bonds
Transition Bonds Raise money to transition to cleaner technologies. For Japan has issued world’s first Sovereign
example, Thermal power plants can issue Transition Bonds to Transition Bonds.
raise money to fund technologies to reduce GHG Emissions.
Social Bonds Raise Money to fund social sector projects such as Education, NABARD has issued Social Bonds in 2023.
Housing, Irrigation etc.
ESG Bonds The bonds inject funds into projects that have a positive Increase in Global sale of ESG Bonds to
impact on Environment, Social and Governance Objectives. around $ 150 bn.
Include Green Bonds, Yellow Bonds, Social Bonds etc.
 CREDIT DEFAULT SWAPS

Practice MCQ No. 221

Which among the following is/are likely benefits of Credit Default Swaps(CDS)?
1. The CDS can deepen Corporate Bond Market in India.
2. The CDS can encourage more retail participation in the Capital Market in India.
3. The CDS can encourage more Foreign Portfolio Investments (FPIs)

Select the correct answer using the code given below:

(a) 1only (b) 1 and 2 only (c) 2 and 3 only (d) 1, 2 and 3
 Terms related to Stock Market
Meaning: Calculated as ( Number of shares multiplier by their prices).
Market Capitalization Recent Development (Jan 2024): India’s market capitalisation has reached $ 4.5 trillion (120% of GDP) . Top 5 Countries in
terms of Market Capitalization: US, China, Japan, Hong Kong, and India
Alpha: Excess returns earned by an investment compared to its benchmark index. If the alpha number is Positive, then Share
has outperformed Benchmark index.
Alpha and Beta Beta (Prelims 2023): Measures the volatility in the share price as compared to Benchmark. The market index has a beta of 1.
So, an asset with a beta of more than 1 is more volatile than that index, while an asset with a beta of less than 1 is less
volatile
Agreement between Company and Investment Bank wherein Investment Bank facilitates issuance and sale of shares in the
Underwriting in IPO IPO. The underwriters would help determine the number of shares and price of shares in the IPO. At the same time, the
underwriters commit to purchase shares if there is under-subscription in an IPO.
Option that enables the underwriters the right to sell additional shares beyond the offered shares to meet the excess
Greenshoe Option demand.
Background: The settlement cycle in the Indian stock market was shortened from T+5 to T+3 in 2002 and then further to T+2
in 2003. In 2021, Sebi introduced the T+1 settlement cycle in a phased manner, which was fully implemented from January
T + 0 Settlement 2023.
Latest Development: From March 28, the T+0 Settlement will be implemented in a phased manner. In the later phase, it
would be introducing Instant Settlement.
 Long Position: Investor has bought Shares and owns them in expectation that its price would increase
Short Position: Entity does not own shares but has borrowed shares in the expectation that its prices would decline.
Short-selling: Strategy wherein short-sellers borrow shares from share owners and sell them in the market and expect that the prices would
fall later. They would then purchase shares at lower prices and make profits

Scenario 1: How Short Sellers make profits?

Gets Rs 100 Spends Rs 90 Profits Rs 10

Starts with Rs 0

Expects the price to fall Share price falls as Purchases share 3 PM

Long Position Short Position at 10 AM
in Future per Expectation at Lower Price

Price of share falls Returns back

Short seller Hindenburg Sells the Share in the Purchases
Investor the share to
borrows 1 Adani Share Market at existing Market in the Market to share at Rs 90
Rs 90 Investor
when its market price is Rs Price of Rs 100
100
Scenario 2: How Short Sellers can make loss?

Gets Rs 100 Spends Rs 110 Loss Rs 10

Starts with Rs 0

Expects the price to fall Share price increase Purchases share 3 PM

Long Position Short Position at 10 AM
in Future against Expectation at Higher Price

Price of share Returns back

Short seller Hindenburg Sells the Share in the Purchases
Investor the share to
borrows 1 Adani Share Market at existing Market increases to Rs share at Rs
110 Investor
When its market price is Rs Price of Rs 100 110
100
 Insider Trading Vs Front Running

IE: 2023
Criteria Insider Trading Front Running
Definition Buying or selling Shares by individuals who have Buying or selling shares by the Brokers or fund managers based upon the
access to Confidential information about the orders placed by clients
company
Involvement Company’s insider such as Director, Employees etc. Brokers or Fund Managers
Source of Confidential Non-Public Information about Company Client who place orders with the Brokers or Fund Managers
Information
How is it done? Scenario 1: Scenario 1: (BUY-BUY-SELL)
Company is going to take over another company. Big Client such as LIC places a big Order with a Mutual Fund company to
Such an information is confidential. Its share prices purchase shares of a particular company. The share prices are expected to
are expected to increase in future. increase in Future due to Bulk Order.
Employee of the company would buy the shares now The Fund manager would first BUY shares on his own behalf. Then BUY
at lower prices and sell them later at higher prices. shares on the behalf of Client. Once the share price increases, Fund
Scenario 2: Manager would SELL the shares at higher prices and make profits
Company is going to publish its annual financial Scenario 2 (SELL-SELL-BUY)
statement. It has made huge loses in that year. Such Big Client such as LIC places a big Order with a Mutual Fund company to
an information is confidential. Its share prices are sell shares of a particular company. The share prices are expected to
expected to reduce in future. decrease in Future due to Bulk Order.
Employee of the company would sell the shares now The Fund manager would first SELL his own shares in company. Then SELL
at higher prices and purchase them later at lower shares on the behalf of Client. Once the share price decrease, Fund
prices. Manager would BUY the shares at lower prices.
 Market Manipulation

Print: 2023
Pump and Dump Scam
Spread False News about Encourage Investors to Manipulator
Market Purchases shares of a Enters into Agreement sells the shares
with Financial the Future increase in purchase more shares of
Manipulator company in Bulk at at higher price
Influencers/ Celebrities share prices of Company the Company leading to
lower Prices and make
through YouTube Videos/ Increase in its Prices
Social Media Profits

Poop and Scoop

Spread False News about Encourage Investors to Manipulator buys the

Market Enters into Agreement
the Future decrease in sell more shares of the shares at lower price
Manipulator with Financial
share prices of Company Company leading to expecting its prices to
Influencers/ Celebrities
through YouTube Videos/ decrease in its Prices increase in Future
Social Media

Wash Trading

Repeatedly Buys and Gives a False Impression Encourage Investors to Manipulator sells the
Market Sells the same shares shares at higher price
Manipulator of Increased Trading purchase Shares leading
using two different Activity to increase in its Prices and make Profits
Accounts